Hyosung Chemical's Geonjong Lee "Simultaneous Investment in Specialty through Specialty Gas Business Sale"

Hyosung Chemical Sells Specialty Gas Division to Hyosung TNC
Funds Raised 920 Billion KRW... "Simultaneous Investment in 9 Products"
"Strengthening Core NF3 Competitiveness in Specialty Gas Business"

Lee Geon-jong, CEO of Hyosung Chemical, announced that the company will accelerate its transition to a high value-added specialty portfolio through the sale of its specialty gases business division.

After the '2025 Chemical Industry New Year's Meeting' held on the 8th at the Plaza Hotel in Jung-gu, Seoul, CEO Lee told reporters, "We plan to invest in high value-added specialty products in cooperation with Hyosung TNC, a financially sound company," adding, "The related technology development has already been completed."

Hyosung Chemical decided in December last year to transfer its specialty gases business division to Hyosung TNC. The acquisition price was set at a total of 920 billion KRW based on an external institution's fair evaluation.

Lee Geon-jong, CEO of Hyosung Chemical, is answering questions from the press after the '2025 Chemical Industry New Year's Meeting' held on the 8th at the Plaza Hotel in Jung-gu, Seoul. Photo by Lee Seong-min

CEO Lee said that the funds secured from this sale will be used to accelerate the development of specialty products. He explained, "Hyosung Chemical usually takes between two to three years from investing in a product to obtaining customer quality certification and generating sales," adding, "To save time, we will simultaneously invest in nine products."

Furthermore, CEO Lee stated, "In addition to the proceeds from this sale, we have raised an additional 150 billion KRW to establish an investment foundation for the specialty business," and said, "We expect significant sales growth starting in 2027."

Since 2007, Hyosung Chemical has built specialty gas production facilities with an annual capacity of 8,000 tons in Ulsan and Ok-san, Chungbuk, producing six types of specialty gases including NF3 (Nitrogen trifluoride). The specialty gases business division, which is the subject of the sale, was once highly profitable with a pre-tax profit margin of up to 30%, but its financial condition has deteriorated over the past three years, limiting its capacity for research and development (R&D) investment.

Hyosung TNC operates an NF3 production plant with a capacity of about 3,500 tons in Quzhou, China, so the combined production capacity of the two companies will reach 11,500 tons. Regarding this, CEO Lee emphasized, "This scale is on par with SK Specialty, which will strengthen our competitiveness."

Meanwhile, Hyosung Chemical and Hyosung TNC plan to hold extraordinary general meetings of shareholders on the 23rd to respectively approve the transfer and acquisition of the specialty gases business division.

This content was produced with the assistance of AI translation services.